Syracuse, NY -- As Barnes & Noble considers putting itself on the market -- selling the company -- an internal battle is raging at the top, and with a top investor. This can't be good for a retailer that is also battling a sea change in its core business. Read on...

From Retailing Today:

Breaking News: Barnes & Noble settlement talks collapse

New York City --Barnes & Noble this afternoon released a statement that talks with investor Ron Burkle to avoid a fight over the retailer’s board have collapsed, potentially leaving Barnes & Noble open to a messy fight with one of its largest shareholders at a time when the company is trying to sell itself.

“Barnes & Noble and Yucaipa were unable to conclude an agreement on mutually acceptable terms,” Barnes & Noble said in a statement. Yucaipa is Burkle’s investment company. If Burkle wages a proxy fight and wins, he could gain considerable control over the company -- and succeed in unseating founder and chairman Leonard Riggio, who has also been identified as a probable bidder.

Under the terms of the proposal, Barnes & Noble would have expanded its board by three seats, with the directors to have been chosen by Burkle. In exchange, Burkle would agree not to start a proxy fight and to withdraw a lawsuit filed this year against Barnes & Noble over a plan meant to limit the size of his stake in the company. He would also support the company’s candidates for directors for this year and next.

My comments: I offer this today as a follow-up to a previous blog concerning the potential sale of the company. This is rough news for many of us to take in, as we love our books, words, and quiet time some Sunday afternoons at B&N.

The latest edition of the free Store Front e-Newsletter was sent TODAY to all Friends of Store Front. Become a Friend. Click here, send the e-mail, wait for an e-mail reply, ship that back and you're on the list.